Optiva Inc (OPT) AI Stock Analysis

• Market Cap: C$1.46M
• Dividend Yield: N/A
• Average Volume (3M): 45.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -3.95%
• EPS Growth: 7.90%
• Country: CA
• Employees: 413
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.32
• Shares Outstanding: 6,226,043
• 10 Day Avg. Volume: 20,512
• 30 Day Avg. Volume: 45,422
• PEG Ratio: -0.01
• Price to Book (P/B): -0.21
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 320.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$0.25 ▲(2.08% Upside)

Optiva Inc's overall stock score reflects significant financial challenges and a weak valuation, which are partially offset by positive corporate events that could drive future growth. Technical analysis indicates mixed market sentiment, with potential short-term volatility.

Positive Factors

Cloud-Native Solutions

Optiva's cloud-native solutions position it well in the digital transformation trend, offering scalability and efficiency for telecom operators.

Revenue Model

The subscription-based revenue model provides recurring income, enhancing financial predictability and customer retention.

Strategic Partnerships

Strategic partnerships expand market reach and enable bundled services, potentially driving growth and competitive advantage.

Negative Factors

Declining Revenue

A significant decline in revenue reflects challenges in market competitiveness and demand, impacting long-term growth prospects.

Negative Equity

Negative equity indicates financial instability, limiting access to capital and increasing vulnerability to economic downturns.

High Leverage

Significant leverage can strain cash flow and limit strategic flexibility, posing risks to financial health and sustainability.

Optiva Inc Business Overview & Revenue Model

Company Description

Optiva Inc. provides cloud-native monetization and revenue management software to communication service providers (CSP) in Europe, the Middle East, Africa, North America, Latin America, the Caribbean, Asia, and the Pacific Rim. The company's monetization products enable real-time charging, rating, billing, product catalog, policy management, and customer care for any digital services of a CSP. Its solutions include Optiva Charging Engine, a convergent charging solution that helps CSPs to monetize platform; Optiva Business Support System Platform, an end-to-end cloud native converged charging and billing solutions on the private and public cloud; Policy Control, a data monetization for real-time applications, such as video streaming, interactive gaming, and voice over LTE; and Optiva Wholesale Billing, a cloud-based solution that provides converged settlement and accurate interconnect billing. The company also offers Optiva Payment solutions that include various payment methods, including voucher and voucher less payment and top-up solutions. The company was founded in 1999 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Optiva generates revenue primarily through software licensing fees and subscription-based models for its cloud-native solutions. The company's revenue model is structured around providing ongoing support, updates, and enhancements as part of its service offerings. Key revenue streams include the sale of its core revenue management software, consulting services to aid in implementation and integration, and ongoing maintenance contracts. Additionally, strategic partnerships with telecom operators and technology providers enhance its market reach and contribute to its earnings by allowing Optiva to offer bundled services and integrated solutions.

Optiva Inc Financial Statement Overview

Summary

Optiva Inc faces substantial financial challenges with declining revenue, persistent losses, and negative equity. The company's financial instability is marked by high leverage and minimal cash flow improvements, indicating significant profitability and sustainability issues.

Income Statement

Optiva Inc's income statement reveals significant challenges with declining revenue and profitability. Revenue has decreased from $96.7M in 2019 to $47.1M in 2024, reflecting a negative growth trend. Gross profit margin has substantially dropped from 67.5% in 2019 to 57.9% in 2024. The company has struggled with consistent net losses, with net income falling from a loss of $11M in 2019 to a loss of $19.7M in 2024. EBIT and EBITDA margins are negative, indicating operational inefficiencies. The company's profit margins have been notably volatile, reflecting potential challenges in cost management and market competitiveness.

Balance Sheet

Optiva Inc's balance sheet indicates financial instability, characterized by negative stockholders' equity, which has worsened from -$35.6M in 2019 to -$56.7M in 2024. The company's debt-to-equity ratio is not calculable due to negative equity, but the high total debt of $102.7M in 2024 suggests significant leverage. Return on Equity is also not meaningful due to negative equity, highlighting profitability challenges. The equity ratio is negative, indicating that liabilities exceed assets, posing a risk to financial health and sustainability.

Cash Flow

The cash flow analysis of Optiva Inc shows mixed performance. Operating cash flow has improved to a positive $415K in 2024 from a negative $3.25M in 2023, signifying some operational recovery. However, free cash flow remains low at $37K in 2024, indicating limited cash available for expansion or debt reduction. The operating cash flow to net income ratio is positive but not strong, reflecting ongoing profitability pressures. Overall, cash flow management remains an area for improvement to support long-term financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.83M	47.08M	47.51M	61.78M	65.24M	75.92M
Gross Profit	26.58M	27.25M	30.61M	44.59M	50.36M	56.31M
EBITDA	-3.33M	-8.21M	-162.00K	13.85M	33.08M	-20.16M
Net Income	-14.80M	-19.68M	-12.26M	709.00K	18.50M	-41.52M
Balance Sheet
Total Assets	70.30M	70.14M	84.31M	86.62M	92.66M	77.38M
Cash, Cash Equivalents and Short-Term Investments	11.45M	10.22M	19.64M	18.39M	29.59M	17.66M
Total Debt	108.49M	102.70M	101.35M	87.72M	86.99M	86.34M
Total Liabilities	133.87M	126.88M	123.60M	112.70M	127.72M	156.81M
Stockholders Equity	-63.57M	-56.74M	-39.29M	-26.08M	-35.06M	-79.43M
Cash Flow
Free Cash Flow	445.00K	37.00K	-3.64M	-1.09M	1.59M	-7.90M
Operating Cash Flow	500.00K	415.00K	-3.25M	-237.00K	2.65M	-7.90M
Investing Cash Flow	-707.00K	-428.00K	760.00K	-2.01M	-1.22M	325.60K
Financing Cash Flow	-5.02M	-10.10M	3.95M	-8.78M	10.89M	-7.52M

Optiva Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OPT, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.23, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OPT.

Optiva Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EONX	57 Neutral	C$43.93M	-18.24	―	―	79.84%	70.95%
OPT	46 Neutral	C$1.46M	-0.06	―	―	-3.95%	7.90%
NBVA	46 Neutral	C$12.98M	-11.28	-24.65%	―	-69.94%	-281.40%
PKK	36 Underperform	C$8.13M	-0.26	―	―	-75.67%	77.36%
VENZ	27 Underperform	C$4.27M	-3.20	-79.05%	―	―	0.75%

Optiva Inc Corporate Events

Optiva Secures Final Approval for Acquisition by Qvantel

Optiva Inc. has received final court approval for its arrangement with Qvantel Oy, allowing Qvantel to acquire all outstanding shares of Optiva. The arrangement, which was approved by Optiva’s shareholders and noteholders, includes a series of financial transactions that will impact Optiva’s stakeholders, including the cancellation of existing notes and issuance of new shares and notes by the purchaser.

Optiva Inc. Shareholders Approve Going Private Transaction

Optiva Inc. has announced that its shareholders and noteholders have approved a plan of arrangement for a going private transaction involving Qvantel Oy. The arrangement will see Qvantel Oy acquire all outstanding common shares of Optiva for C$0.25 per share, while noteholders will receive a combination of voting shares, secured notes, warrants, and potential cash payments. The approval was overwhelmingly supported by shareholders and noteholders, and the transaction is expected to be completed by the end of the year, pending final court approval and other customary conditions. This move is likely to impact Optiva’s market presence by transitioning it from a public to a private entity, potentially affecting its strategic operations and stakeholder engagements.

Optiva Inc. Reports Q3 2025 Financial Results and Strategic Developments

Optiva Inc. reported its third-quarter 2025 financial results, highlighting a revenue of $10.1 million and a gross margin of 55%. The company announced a strategic transaction with Qvantel, expected to close by the end of 2025, which aims to create a leading BSS vendor for CSPs. Optiva’s recent engagements include a full-stack BSS transformation for a fast-growing MVNO in the APAC region and an expanded partnership with a Tier 1 UK telecom provider. Despite a decrease in support and subscription revenue, Optiva continues to innovate and expand its market presence, evidenced by its finalist position for the 2025 Glotel Awards.

Optiva Inc. Proposes Going Private Transaction with Qvantel Oy

Optiva Inc. has announced the mailing of meeting materials for a special meeting of shareholders and noteholders to approve a going private transaction with Qvantel Oy. The proposed plan involves Qvantel acquiring all outstanding shares of Optiva and restructuring the company’s financial obligations, which could significantly impact Optiva’s market positioning and stakeholder interests. The arrangement requires approval from shareholders, noteholders, and the Ontario Superior Court of Justice.

Optiva and Qvantel Unite to Revolutionize AI-Powered BSS

Optiva Inc has entered a strategic transaction with Qvantel to form a top-tier global team, enhancing their AI-enabled BSS offerings. This collaboration aims to provide CSPs with a robust alternative to legacy vendors, leveraging a combined expertise of over 1,000 professionals and an extended customer base across more than 40 countries. The transaction involves Qvantel acquiring all issued shares of Optiva, with the deal structured to include cash considerations and new Qvantel shares for Optiva stakeholders. This move is expected to drive innovation and growth in the BSS market, offering significant scale and financial strength to support CSPs in the AI era.